Paschal Donohoe (Dublin Central, Fine Gael)
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Developers are not regulated financial service providers and their actions are not a matter for the Department of Finance so my Department is not undertaking any examinations into reports that developers are no longer accepting "subject to loan approval" clauses in contracts for house sales. I am aware that the Deputy has put a similar question to the Minister for Housing, Planning and Local Government.

That said, I am aware that the Law Society of Ireland's conveyancing committee recently reviewed its recommendation that “solicitors acting for purchasers where a loan is required in order to complete the purchase transaction insert a special condition (or amend their usual form of special condition regarding loan approval) to provide that the contract and the completion thereof is subject to the purchaser’s loan approval being in place at the date of completion in a sum sufficient to allow the purchaser complete the contract.”

In June 2017, the committee concluded that "it would be unsafe for purchasers if it changed its recommendation. The dangers of proceeding without a loan clause in a contract are too serious for the majority of purchasers relying on loan finance to complete the purchase."

While the purchase of homes by buyers from developers is not within my remit as Minister for Finance, I would strongly advise home buyers to be cognisant of this conclusion in negotiating the contract for purchase.